יורו / דולר אמריקאיהשכלה
WHAT IS ChoCH AND HOW TO USE IT
ChoCH in trading is a change of sentiment (change of character) in trading order blocks.
✴️ Definition
The ChoCh (change of character) is a change of sentiment in the market. That is, the change in the nature of the movement of the market from bullish to bearish or vice versa. This term is used in technical analysis strategies of order block trading.
It is used by traders in the forex market, as well as in the cryptocurrency market. Choch is also known as a reversal when the price fails to form a new higher high or lower low. It then breaks the pattern and starts moving in a different direction.
To form a Choch using the smart money concept on a chart in a downtrend, you must as shown above:
1.Gradually decreasing highs and lows of the bearish trend.
2. The last maximum price update. It is at this point that a change in sentiment is formed.
We will go over the basics of Choch trading and the main advantages of trading.
✴️ Combination of timeframes on Forex
The best entry points are formed when combining two timeframes:
Keep in mind that a change in structure does not always involve a global change in market trend.
1. On the higher timeframe the order block is formed as support or resistance level, in the zone of which the reversal is looked for. This is H1, H4 or D1 time frame.
2. The lower timeframe is used to identify the change of character and entry on the trade signal after the Order Block test. On the mt4 chart this looks like the example, where the order block is highlighted by a rectangular range below.
✴️ How to trade
Let's analyze EURUSD recent trading opportunity for the change of the market movement. The first one shows that a bos (break of structure) was formed after the choch.
The buy position took place when the chart returned to the order block area. The next reversal pattern is relevant in determining the liquidity zone, where there are the stop losses of the crowd of traders.
The difference between the previous pattern is that the price tends to break the liquidity zone after the bos. Buying is performed on the order block at the very minimum of the chart.
✴️ Conclusion
Choch in trading allows the trader to determine the best reversal point with a high-risk profit ratio. Often the values reach 1k5 or more.
The change of mood is easy to identify even for beginners in Forex trading on smart money. At the same time, its success rate reaches 60 percent.
✴️ Definition
The ChoCh (change of character) is a change of sentiment in the market. That is, the change in the nature of the movement of the market from bullish to bearish or vice versa. This term is used in technical analysis strategies of order block trading.
It is used by traders in the forex market, as well as in the cryptocurrency market. Choch is also known as a reversal when the price fails to form a new higher high or lower low. It then breaks the pattern and starts moving in a different direction.
To form a Choch using the smart money concept on a chart in a downtrend, you must as shown above:
1.Gradually decreasing highs and lows of the bearish trend.
2. The last maximum price update. It is at this point that a change in sentiment is formed.
We will go over the basics of Choch trading and the main advantages of trading.
✴️ Combination of timeframes on Forex
The best entry points are formed when combining two timeframes:
Keep in mind that a change in structure does not always involve a global change in market trend.
1. On the higher timeframe the order block is formed as support or resistance level, in the zone of which the reversal is looked for. This is H1, H4 or D1 time frame.
2. The lower timeframe is used to identify the change of character and entry on the trade signal after the Order Block test. On the mt4 chart this looks like the example, where the order block is highlighted by a rectangular range below.
✴️ How to trade
Let's analyze EURUSD recent trading opportunity for the change of the market movement. The first one shows that a bos (break of structure) was formed after the choch.
The buy position took place when the chart returned to the order block area. The next reversal pattern is relevant in determining the liquidity zone, where there are the stop losses of the crowd of traders.
The difference between the previous pattern is that the price tends to break the liquidity zone after the bos. Buying is performed on the order block at the very minimum of the chart.
✴️ Conclusion
Choch in trading allows the trader to determine the best reversal point with a high-risk profit ratio. Often the values reach 1k5 or more.
The change of mood is easy to identify even for beginners in Forex trading on smart money. At the same time, its success rate reaches 60 percent.
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bit.ly/3spSQqC
🔻FREE Telegram channel🔻
t.me/DeGRAMChannel
🔻Contact for Paid SIGNALS🔻
t.me/DeGRAMForex
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